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About This Calculator
Determine your required minimum distribution from traditional IRAs and retirement accounts once you reach the mandatory age set by the IRS. Failing to withdraw the correct amount results in a steep penalty on the shortfall, making accurate calculation essential. This tool uses the current IRS life expectancy tables to compute exactly how much you must withdraw each year.
Quick Tips
- 1 RMDs start at age 73 — plan withdrawals earlier to reduce future required amounts.
- 2 Convert traditional IRA funds to Roth before 73 to eliminate RMDs on that money.
- 3 Donate your RMD directly to charity via QCD to avoid paying income tax on it.
Example Calculation
A 73-year-old with $850,000 Traditional IRA, Uniform Lifetime Table factor 26.5.
RMD amount: $32,075 | Monthly equivalent: $2,673 | Penalty if missed: $8,019 (25%)
What Are Required Minimum Distributions
Required Minimum Distributions (RMDs) are mandatory annual withdrawals that the IRS requires from tax-deferred retirement accounts such as Traditional IRAs, 401(k)s, and 403(b)s. The purpose of RMDs is to ensure that money held in tax-advantaged accounts is eventually taxed as income rather than passed on indefinitely. Under the SECURE 2.0 Act, RMDs must begin by April 1 of the year following the year you turn 73, and the age will increase to 75 starting in 2033. Roth IRAs are exempt from RMDs during the account owner's lifetime, which is one of their key advantages for retirement and estate planning.
IRS Uniform Lifetime Table Explained
The IRS Uniform Lifetime Table is the standard table used to calculate your annual RMD amount by providing a distribution period based on your age. To determine your RMD, you divide your account balance as of December 31 of the prior year by the distribution period factor for your current age. For example, at age 75 the distribution period is 24.6, so an account with a $500,000 balance would require a minimum withdrawal of approximately $20,325. The distribution period decreases each year as you age, meaning your RMD percentage grows larger over time. A separate Joint Life and Last Survivor table applies if your sole beneficiary is a spouse more than 10 years younger.
RMD Rules for Different Account Types
RMD rules vary depending on the type of retirement account. Traditional IRAs, SEP IRAs, and SIMPLE IRAs each require separate RMD calculations, but you can take the total required amount from any one or combination of your IRA accounts. Workplace plans like 401(k)s and 403(b)s require RMDs to be taken from each plan individually and cannot be aggregated across accounts. If you are still working past age 73, you may be able to delay RMDs from your current employer's 401(k) under the still-working exception, but this does not apply to IRAs or plans from former employers. Inherited retirement accounts have their own distinct RMD rules, which were significantly changed by the SECURE Act of 2019.
Strategies to Minimize the Tax Impact of RMDs
Several strategies can help reduce the tax burden of Required Minimum Distributions. Roth conversions before age 73 allow you to move money from a Traditional IRA to a Roth IRA, paying taxes now at potentially lower rates to avoid larger RMDs later. Qualified Charitable Distributions (QCDs) let you donate up to $105,000 per year directly from your IRA to charity, satisfying your RMD without adding to your taxable income. Timing your first RMD carefully matters as well, because delaying your first distribution to April 1 means taking two RMDs in the same calendar year, which could push you into a higher tax bracket. Starting withdrawals strategically in your 60s can also smooth out your tax liability across retirement.
Frequently Asked Questions
As of the SECURE 2.0 Act, RMDs must begin at age 73 for those born between 1951–1959, and age 75 for those born in 1960 or later. Your first RMD is due by April 1 of the year after you turn the applicable age. Subsequent RMDs are due by December 31 each year.
Your RMD is calculated by dividing your retirement account balance (as of December 31 of the prior year) by the IRS life expectancy factor for your age. For example, at age 73 the factor is 26.5, so a $500,000 balance would require a $18,868 withdrawal.
The penalty for missing an RMD was reduced from 50% to 25% by the SECURE 2.0 Act, and can be further reduced to 10% if corrected promptly. On a $18,868 RMD, the 25% penalty would be $4,717. Always take your RMD on time.
No, Roth IRAs do not have RMDs during the original owner's lifetime. This is one of the biggest advantages of Roth accounts. However, inherited Roth IRAs do have distribution requirements for non-spouse beneficiaries under the SECURE Act.
Yes, you can withdraw more than the RMD at any time. However, excess withdrawals cannot be applied to future years' RMDs. Taking larger distributions may make sense if you are in a lower tax bracket or want to reduce future RMDs and the associated tax burden.